Financial freedom strategies

Posts about traditional financial strategies to win your freedom – Saving, Learning, Building, Borrowing and Investing

“If you do not find a way to make money while you sleep you will work until you die”

– Warren buffet

What is ‘traditional’ Financial Independence?

We started on our financial freedom journey about 10 years ago, and we’re still learning. We’re still using a lot of the strategies we talk about here so everything you read is based on our personal experience. We’re not financial advisors. We just share our research and what we’re doing in the hope it motivates and informs you to live the life you want, starting with your finances!

Let’s kick off by talking about what we at The Live Life Project call “Traditional FI”.

“Traditional FI uses capital to build wealth.”

‘Traditional FI’ is premised on you doing two things:

  1. Using the ‘Trinity Study’ to determine your ‘FIRE number’ or the dollar value worth of assets you need before you can retire. … AND
  2. Putting in place a bunch of traditional FI strategies that utilise capital to build wealth and get to that FIRE number, so you can be financially free.

What is the Trinity Study?

The Trinity study was done in the 1990s – definitely before the new money game began! Basically, the model-based Trinity theory is that you need 25x your annual living costs in assets to retire and not earn any income again. To most folks that is a sh*t tonne of moolah to accumulate by your 30s or 40s.  

Financial Independence Retire Early – a popular Financial Independence movement – is all about applying the Trinity Study 4% or 25x rule. This rule that says if you can build an asset base 25 x your cost of living, you can live off that by drawing down 4% per year in income and you’ll never have to work again.

If you can live off $50k per year, you’ll need an eye watering $1.25M.

Most folks stop there because that mountain looks just too high to climb…and that’s the problem with Traditional FI. It just doesn’t seem accessible to many people.

Many of these traditional strategies are still highly relevant – like property investment. But…. we at the LLP also want to introduce to you the concept of 

digital assets.

Digital assets are where you’ll find financial freedom strategies for the new rules of money.

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